Business-to-business or B2B is a transaction or interaction that
takes place between two or more businesses. B2B transactions usually
involve automated processes between the trading partners. They are
performed in much higher volumes than business-to-consumer or B2C
transactions. A company that makes aircraft engines would sell their
products to an aircraft manufacturer, which is another business entity.
In contrast, when a company sells consumer goods such as health care
products to customers, the ensuing transaction would be termed as a B2C
transaction. B2B transactions also include marketing activities between
businesses and not just the final result from marketing efforts. The
term B2B is also used to identify sales transactions between businesses.
Business
to business marketing is defined as 'the process of planning and
executing the pricing, promotion and distribution of goods, ideas and
services to create exchanges by one business, usually a professional
marketing agency, to satisfy organizational goals of another business'.
The goal of a business agency engaged in B2B Marketing is to establish,
maintain and enhance long-term customer relationships with other
businesses at a profit, so that the objectives of all the concerned
parties are met.
The actual marketing generally involves the
processes of market research, product development, product life cycle
management, pricing, channel management as well as product promotion.
However, marketing is not a direct decision maker in these processes. It
ensures that products and services are developed according to market
requirements and are profitable.
Many businesses produce
sophisticated high value products requiring huge financial and time
investments. They need accurate information and feedback regarding the
product feasibility, desirability, price band, consumer response to
their product and similar products in the market. Such businesses prefer
to entrust product marketing and related tasks to professional
marketing agencies. Many B2B marketing agencies conduct their own
marketing on the Internet.
